Centene Corp (CNC)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 4,959,000 | 4,647,000 | 3,957,000 | 3,111,000 | 2,678,000 | 2,768,000 | 3,126,000 | 3,601,000 | 3,636,000 | 3,942,000 | 3,951,000 | 3,462,000 | 3,263,000 | 2,675,000 | 2,762,000 | 3,948,000 | 3,154,000 | 3,416,000 | 3,002,000 | 1,627,000 |
| Interest expense (ttm) | US$ in thousands | 702,000 | 713,000 | 718,000 | 723,000 | 725,000 | 716,000 | 704,000 | 685,000 | 665,000 | 653,000 | 654,000 | 655,000 | 665,000 | 680,000 | 694,000 | 718,000 | 728,000 | 664,000 | 579,000 | 493,000 |
| Interest coverage | 7.06 | 6.52 | 5.51 | 4.30 | 3.69 | 3.87 | 4.44 | 5.26 | 5.47 | 6.04 | 6.04 | 5.29 | 4.91 | 3.93 | 3.98 | 5.50 | 4.33 | 5.14 | 5.18 | 3.30 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $4,959,000K ÷ $702,000K
= 7.06
Centene Corp's interest coverage ratio has fluctuated over the past few years, indicating its ability to meet its interest obligations. The interest coverage ratio measures the company's ability to cover its interest expenses with its operating income.
From March 31, 2020, to December 31, 2024, the interest coverage ratio ranged from a low of 3.30 to a high of 7.06. Generally, a higher interest coverage ratio is preferable as it signifies that the company is generating sufficient operating income to cover its interest expenses comfortably.
Centene's interest coverage ratio peaked at 7.06 on December 31, 2024, indicating a strong ability to meet its interest obligations. Conversely, the lowest interest coverage ratio of 3.30 on March 31, 2020, suggests that the company may have had more difficulty covering its interest expenses with its operating income during that period.
Overall, the trend in Centene Corp's interest coverage ratio shows some volatility but has generally improved from the earlier periods to the later periods, reflecting an enhanced ability to manage its interest expense obligations.
Peer comparison
Dec 31, 2024